This is one of the most asked questions at The Debt Free Advocate. There are things you can do if creditors and collectors are harassing you at work or at home.
Remember You Have Rights.
You have many rights provided by the federal government with regard to your debts and credit report. Different states provide for different rights as well. Check your state's laws at findlaw.com. Chapter 7 lists organizations that can help you understand and exercise your rights.
Two very important federal laws that you need to know about to protect yourself and exercise your rights--the federal Fair Debt Collection Practices Act and the federal Fair Credit Reporting Act.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act(FDCPA) lays out specifics of how a collection agency may behave towards consumers. The FDCPA applies not only to actual collection agencies, but to people acting as debt collectors as well.
Collectors Contacting You
Debt collectors may not contact you at unusual or inconvenient hours--which include before 8 a.m. and after 9 p.m.--or at work if you are not permitted to accept calls from creditors there. They cannot call you repeatedly or call you without identifying who they are. They cannot call you collect or cause you to be responsible for any of the costs associated with the phone calls. They cannot identify themselves as a law enforcement agency or as an attorney. They cannot harass, oppress, or abuse you. They cannot use or threaten to use violence or harm towards you or anyone else and they cannot threaten to damage your reputation. They cannot threaten to garnish your wages or sue you unless they actually intend to do so. They cannot threaten to have arrested or put you in jail. They need to speak with your attorney if you have one and do not need to speak to you directly unless you give them permission. (FDCPA,Secs. 1692(c) and 9d).)
Obscene language is not permitted. They cannot publish your name on a deadbeat list. If a debt collector contacts you, you can instruct them not to call you any more. Debt collectors have to abide by this request and can only contact you by mail of the status of your account, such as when it is being forwarded to an attorney for a lawsuit. (FDCPA, Secs. 1692(c) through (f).)
Whenever you talk to a debt collector be sure to their name, the name of the agency they work for, address, and phone number. Document all contact, including the dates, times, and the basis of the conversations. If you think you are being treated in a way that violates the law or if your requests for no contact are being ignored, write to the agency and complain. Keep a copy of the letter and send it certified. Contact your state attorney general about the problem.
Collectors are not allowed to lie about the money you owe nor can they threaten to take action against you that they are not intending to take. Unfair or outrageous attempts to collect the money are not permitted. They cannot add interest or fees that are not part of the original debt, ask for a postdated check by threatening you with criminal action, or accepting a check that is more than five days postdated unless they notify you three to ten days before cashing it. They may not deposit a postdated check before the date on it. (FDCPA, Sec. 1692(f).)
Collectors Corresponding with You
Correspondence you receive from a debt collector cannot resemble court documents or correspondence from a government agency. It cannot appear as if it has come from an attorney. The correspondence must come in a plain envelope and it cannot indicate that it is from a collection agency or that it is in reference to collection of debt. (FDCPA, Sec. 1692(e).)
Collectors Contacting Others
Debt collectors have to give their names and who they work for when contacting other people and state that they are calling to confirm your address or employment information. They cannot discuss that they are trying to collect on a debt and they cannot call more than once unless they received incorrect or incomplete information the first time. (FDCPA, Sec. 1692(b).)
Remedies for Improper Attempts to Settle a Debt
You can take action against any creditor that violates any provisions of the law. Be sure you keep detailed records and keep all evidence of the violation. If possible have a witness verify the violation. Someone who may have heard or saw the improper act. However, remember that in some states you can record phone conversations without permission, but in many states you have to have permission from the person you are recording.
Send a letter detailing the violation to the original creditor and your state's attorney general. Also, send a letter to the Federal Trade Commission at your regional office listed online at ftc.gov. You may be able to get the entire debt canceled because of this. If you are being harassed you can possibly have a small claims case for damages for your pain and suffering as well as punitive damages of up to $1,000 to punish the collection agency for its actions. (FDCPA, SEc 1692(k).)
How to Deal with Collection Agencies
Collection agencies are in business to earn money by collection of debts. Your debt ends up in collection by one of two ways. 1) the creditor transfers your debt to the collection agency and agrees to pay the agency a percentage of the amount they collect, or 2) the creditor will sell the right to collect on your debt to the agency and the agency gets to keep whatever it collects from you. Collection agents that work for the agency usually do so for a commission. They get paid a percentage of what they collect from you, so they are highly motivated to get you to pay. Often collect on agencies have a bad reputation and people see them as sharks that bother people at home and work to collect money any way they can. As we have discussed, the laws are quite clear about what collection agencies can and cannot do. The individuals who work for the collection agencies are not out to get you--they are trying to do their jobs and earn a living. It can be rough job, but somebody has to it. You can disagree with their tactics and with their line of work of course.
When you finally do talk to a collection agency, you need to remember that you are dealing with a professional debt collector. Be sure you do not get talked into paying more than you are able to. Be sure to figure out how much you can pay monthly before you talk to the agency. The agent may seem to act friendly and seem as if they are on your side and willing to help you. Never believe this. Collections especially these days is big money and you are the only one who can safeguard your financial situation. The agents are well trained in talking people into paying as much as possible. The more they collect, the more they get paid. They are persistent and persuasive. If you are not able to pay anything at the time or the deal they are offering is not sufficient always remember you can tell them to stop calling.
You have many rights provided by the federal government with regard to your debts and credit report. Different states provide for different rights as well. Check your state's laws at findlaw.com. Chapter 7 lists organizations that can help you understand and exercise your rights.
Two very important federal laws that you need to know about to protect yourself and exercise your rights--the federal Fair Debt Collection Practices Act and the federal Fair Credit Reporting Act.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act(FDCPA) lays out specifics of how a collection agency may behave towards consumers. The FDCPA applies not only to actual collection agencies, but to people acting as debt collectors as well.
Collectors Contacting You
Debt collectors may not contact you at unusual or inconvenient hours--which include before 8 a.m. and after 9 p.m.--or at work if you are not permitted to accept calls from creditors there. They cannot call you repeatedly or call you without identifying who they are. They cannot call you collect or cause you to be responsible for any of the costs associated with the phone calls. They cannot identify themselves as a law enforcement agency or as an attorney. They cannot harass, oppress, or abuse you. They cannot use or threaten to use violence or harm towards you or anyone else and they cannot threaten to damage your reputation. They cannot threaten to garnish your wages or sue you unless they actually intend to do so. They cannot threaten to have arrested or put you in jail. They need to speak with your attorney if you have one and do not need to speak to you directly unless you give them permission. (FDCPA,Secs. 1692(c) and 9d).)
Obscene language is not permitted. They cannot publish your name on a deadbeat list. If a debt collector contacts you, you can instruct them not to call you any more. Debt collectors have to abide by this request and can only contact you by mail of the status of your account, such as when it is being forwarded to an attorney for a lawsuit. (FDCPA, Secs. 1692(c) through (f).)
Whenever you talk to a debt collector be sure to their name, the name of the agency they work for, address, and phone number. Document all contact, including the dates, times, and the basis of the conversations. If you think you are being treated in a way that violates the law or if your requests for no contact are being ignored, write to the agency and complain. Keep a copy of the letter and send it certified. Contact your state attorney general about the problem.
Collectors are not allowed to lie about the money you owe nor can they threaten to take action against you that they are not intending to take. Unfair or outrageous attempts to collect the money are not permitted. They cannot add interest or fees that are not part of the original debt, ask for a postdated check by threatening you with criminal action, or accepting a check that is more than five days postdated unless they notify you three to ten days before cashing it. They may not deposit a postdated check before the date on it. (FDCPA, Sec. 1692(f).)
Collectors Corresponding with You
Correspondence you receive from a debt collector cannot resemble court documents or correspondence from a government agency. It cannot appear as if it has come from an attorney. The correspondence must come in a plain envelope and it cannot indicate that it is from a collection agency or that it is in reference to collection of debt. (FDCPA, Sec. 1692(e).)
Collectors Contacting Others
Debt collectors have to give their names and who they work for when contacting other people and state that they are calling to confirm your address or employment information. They cannot discuss that they are trying to collect on a debt and they cannot call more than once unless they received incorrect or incomplete information the first time. (FDCPA, Sec. 1692(b).)
Remedies for Improper Attempts to Settle a Debt
You can take action against any creditor that violates any provisions of the law. Be sure you keep detailed records and keep all evidence of the violation. If possible have a witness verify the violation. Someone who may have heard or saw the improper act. However, remember that in some states you can record phone conversations without permission, but in many states you have to have permission from the person you are recording.
Send a letter detailing the violation to the original creditor and your state's attorney general. Also, send a letter to the Federal Trade Commission at your regional office listed online at ftc.gov. You may be able to get the entire debt canceled because of this. If you are being harassed you can possibly have a small claims case for damages for your pain and suffering as well as punitive damages of up to $1,000 to punish the collection agency for its actions. (FDCPA, SEc 1692(k).)
How to Deal with Collection Agencies
Collection agencies are in business to earn money by collection of debts. Your debt ends up in collection by one of two ways. 1) the creditor transfers your debt to the collection agency and agrees to pay the agency a percentage of the amount they collect, or 2) the creditor will sell the right to collect on your debt to the agency and the agency gets to keep whatever it collects from you. Collection agents that work for the agency usually do so for a commission. They get paid a percentage of what they collect from you, so they are highly motivated to get you to pay. Often collect on agencies have a bad reputation and people see them as sharks that bother people at home and work to collect money any way they can. As we have discussed, the laws are quite clear about what collection agencies can and cannot do. The individuals who work for the collection agencies are not out to get you--they are trying to do their jobs and earn a living. It can be rough job, but somebody has to it. You can disagree with their tactics and with their line of work of course.
When you finally do talk to a collection agency, you need to remember that you are dealing with a professional debt collector. Be sure you do not get talked into paying more than you are able to. Be sure to figure out how much you can pay monthly before you talk to the agency. The agent may seem to act friendly and seem as if they are on your side and willing to help you. Never believe this. Collections especially these days is big money and you are the only one who can safeguard your financial situation. The agents are well trained in talking people into paying as much as possible. The more they collect, the more they get paid. They are persistent and persuasive. If you are not able to pay anything at the time or the deal they are offering is not sufficient always remember you can tell them to stop calling.
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